DEFENSE LOGISTICS AGENCY HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

May 16, 2019 

MEMORANDUM FOR SUPPLY DISCREPANCY REPORTING (SDR) PROCESS

REVIEW COMMITTEE (PRC) MEMBERS

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1236,

Miscellaneous SDR Enhancements Including Reconsideration Requests, Edit Use 

of Reply Code 504, and Remove Air Force Security Assistance Command 

(AFSAC) Historical Procedures (SDR)

The attached change to DLM 4000.25, Defense Logistics Management Standards (DLMS), is 

approved for implementation. The Enterprise Business Standards Office will post the updated 

DLMS Implementation Conventions (IC) to the Web at 

http://www.dla.mil/HQ/InformationOperations/DLMS/elibrary/Transformats/140_997/, within 10

days from the above date.

Addressees may direct questions to EBSO.SDR@dla.mil. Others must contact their 

designated SDR PRC available at http://www.dla.mil/HQ/InformationOperations/DLMS/allpoc/. 

HEIDI M. DAVEREDE

 Director

 Enterprise Business Standards Office

Attachment

As stated 

cc:

ODASD(Logistics)
Attachment, ADC 1236

Page 1

Attachment to ADC 1236

Miscellaneous SDR Enhancements Including Reconsideration Requests, Edit Use of 

Reply Code 504, and Remove AFSAC Historical Procedures

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: Mr. Ben Breen, 

SDR PRC Chair, e-mail: DLMSSDR@DLA.MIL

2. FUNCTIONAL AREA LOGISTICS AND TRANSACTION CHANGES: 

a. Primary/Secondary Functional Area: SDR

b. Logistics and Transaction Changes (Check All That Apply): 

 Category  Category  Category

Billing Physical Inventory Contract Admin

 Discrepancies / Deficiencies MILSTRAP DoDAAD

Serialization MILSTRIP MAPAD

Small Arms/Light Weapons MRA LMARS

pRFID Disposition  DLM Publications

GFP DOD BRAC

3. REFERENCES: DLM 4000.25, Defense Logistics Management Standards (DLMS), 

Volume 2, Supply Standards and Procedures, Chapter 17, Supply Discrepancy Reporting.

4. APPROVED CHANGE(S): Green highlighting identifies substantial changes subsequent to

staffing.

a. Brief Overview of Change:

(1) Revise reconsideration request procedures under Chapter 17 and replace the 

term “customer” with “submitter” in support of all SDR document types. 

(2) Implement edit in WebSDR to block the use of the Reply Code 504 (forwarding) used with another reply code and restrict the use to SDR Document Type Code 7 or R.

(3) Remove business rules from DLMS 4000.25, Volume 2, Chapter 17, SDR 

regarding Air Force Security Assistance Command (AFSAC) historical (49) SDR procedures.

b. Background:

(1) Currently DLMS, Volume 2, Supply Standards and Procedures, Chapter 17, 

Supply Discrepancy Reporting (Reference 3.a.) refers to customers when submitting a 
Attachment, ADC 1236

Page 2

Reconsideration (Transaction Set Purpose Code 15). The use of the term customer infers a 

reconsideration can be generated only by the activity who initiated a Document Type 7 

(Customer originated, depot/lateral shipment/other) or a Type 6 (Customer originated, direct 

vendor/contractor delivery). However, a request for reconsideration can be generated for all 

document type code of SDRs and currently being used by storage activities to seek clarification 

from the Inventory Control Point (ICP) on Replies (Transaction Set Purpose Code 11) when the 

disposition is not clear or further clarification is required by the storage activity. 

(2) Reply Code 504 (SDR forwarded to new action activity as shown) is used 

when an SDR is misdirected to an activity that should not be the action activity. For example, 

Document Type Code 7/R SDRs are to be routed first to the DLA Distribution Center that

shipped the materiel (exception to this is the Army, which receives a Type 7 original (00) for 

action, not DLA Distribution). The ICP generates Reply Code 504 if the customer first creates a

Type 7 SDR to the ICP for action for a DLA Distribution shipment. In this scenario the ICP 

would use Reply Code 504 and input the shipping distribution center Routing Identifier Code 

(RIC) as the RIC TO for action. This will result in a new original (00) SDR with all the data 

content being perpetuated and sent to the RIC TO identified in the transaction. Also, any parties 

identified to receive copies of this SDR will receive a copy of the Reply Code 504 reply 

(Transaction Set Purpose Code 11- Reply). However, in some instances the action activity 

generating the Reply Code 504 is also inputting other SDR reply codes. This results in these 

other reply codes being perpetuated, resulting in confusion and systemic issues for those 

receiving this transaction. The reason Reply Code 504 will be restricted to a Type 7 or R SDR is 

that storage activity Document Type Code SDRs (8/9/A/N/P) record the SDR to an owner RIC. 

The owner RIC, in most cases, is the activity receiving the SDR for action; the exception is that 

new procurement (Document type Code 9/P) SDRs are routed to the manager if no owner RIC is 

identified in the Pre-Position Material Release DLMS 527D. If a Reply Code 504 is used for a 

storage activity SDRs, the SDR is routed to a new action activity but this does not update the 

storage activities record for owner balance. Therefore, when the new action activity replies (via 

Reply Code 504), the storage activity will reject this reply because the initial SDR wasn’t sent to 

this new action activity for action, since it would be an audit violation for the storage activity to 

process a disposition reply from an activity that is not listed as the owner of the materiel. 

(3) During the design for WebSDR, Components using internal SDR systems 

identified a need for a business process that would allow SDRs to be worked internal to the 

Component or internal to the Component’s SDR application without providing standard 

transaction/e-mail outputs from WebSDR. Consequently, historical SDRs (identified by 

Transaction Set Purpose Code 49) were established for this purpose. In the case of AFSAC 

SDR-A-generated SDRs, use of historical SDRs allows WebSDR to support internal 

communication of SDRs prior to ILCO approval and transmission of the SDR to the applicable 

action activity. However, the AFSAC executive agent for SDRs has informed the Enterprise 

Business Standards Office (EBSO) that SDR-A no longer uses historical SDRs (49s). 

c. Requested Change in Detail:

(1) Revise reconsideration request procedures in DLMS, Volume 2 

Chapter 17 (reference 3.a.) and replace the term “customer” with “submitter” to

support all SDR document types (see Enclosure 1). Also, update the DLMS 842A/W 
Attachment, ADC 1236

Page 3

implementation convention (IC) to reflect the correct term and clarify it can be used 

for all SDR Document Type Codes (see Enclosure 2). 

(2) Implement new edit for WebSDR direct online application input and 

SDR transactions to reject any SDR using Reply Code 504 for other than SDR Document 

Type Code 7 or R or in conjunction with any other reply code. WebSDR will reject 

transactions with new Reply Code (SDR reply code additions are shown in red bold 

italics). 

(a) 949 Transaction rejected. Reply Code 504 can only be used 

for SDR Document Type Code 7 or R, and cannot be used with any other reply code. 

(b) Long text description of the rejection will state, “Invalid use 

of Reply Code 504. Reply Code 504 can only be used for SDR Document Type Code 7

or R and cannot be used with any other reply code”.

(3) Update DLMS 4000.25, Volume 2, Chapter 17, to remove business 

rules regarding Air Force Security Assistance Command (AFSAC) historical SDR 

procedures as shown in Enclosure 1. 

d. Revisions to DLM 4000.25 Manuals:

(1) Revise DLM 4000.25, Volume 2, Chapter 17, Supply Discrepancy Reporting, 

as shown in Enclosure 1. 

(2) Update DLMS Volume 2, Appendix 7.28, Supply Discrepancy Report 

Relevant Data Elements, for new discrepancy codes as shown in paragraph 4.c.(2).

(3) Revise the DLMS IC 842A/W, and 842A/R SDR transactions as shown in 

Enclosure 2.

e. REASON FOR CHANGE: This change provides clarity and updates SDR 

procedures and business rules.

f. Approved Transaction Flow: Standard SDR business transactions apply.

g. Alternatives: None noted.

5. ADVANTAGES AND DISADVANTAGES:

a. Advantages: These changes will systemically enforce current SDR business process 

and procedures and clarify the business and system requirements in various scenarios to the SDR 

community.

b. Disadvantages: None.

6. ASSUMPTIONS USED OR WILL BE USED IN THE CHANGE OR NEW 

DEVELOPMENT: None identified.
Attachment, ADC 1236

Page 4

7. ADDITIONAL COMMENTS TO CONSIDER: None.

8. ADDITIONAL FUNCTIONAL REQUIREMENTS: None.

9. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: The updates to DLMS 842 

data elements in the DLMS IC and WebSDR will be in place within 10 days after publication of 

this change. The implementation of WebSDR edits will occur by December 31, 2019.

10. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: None identified.

11. IMPACT: 

a. New DLMS Data Elements: None identified.

b. Changes to DLMS Data Elements: SDR reply codes updated as shown above.

c. Automated Information Systems (AIS): Revise SDR applications for revised SDR 

reply code list.

d. Defense Automatic Addressing System (DAAS): Update WebSDR tables for 

revised SDR reply code list.

e. Non-DLM 4000.25 Series Publications: DOD Components may need to update 

internal operating procedures and other published Receipt/SDR guidance.

12. PROPOSED DLMS CHANGE (PDC) 1236 RESPONSE/COMMENT RESOLUTION:

Component Response/Comment Disposition

1. DLA DLA concurs with the following comment.

Will components be able to use the 504 forwarding 

process in the future to use on other types of 

SDRs that need to be routed to DCMA or is it the 

intention to have the 50 I code programmed and work 

like the 504 in the component system.

As noted.

2. Navy Naval Supply System Command, Headquarters originally 

non-concurred Navy stated it was found that if Reply 

Code 504 is rejected if used in conjunction with any other 

Action Point Response Codes, there could be issues on 

SDRs reviewed internally and then required redirect 

action. SDR History in PDREP has not been corrected 

yet, the rejection of Reply Code 504 could cause the SDR 

coordinators to remove existing Action Points Response 

Codes in order to redirect a SDR to DLA. This represents 

a major audit concern for the Navy. However, after a 

teleconference with the Navy, PDREP, and EBSO Naval 

Supply System Command, Headquarters has reviewed 

subject PDC 1236 and concurs with comment. Navy 

requests language added to include the process for using 

reply code 612.

As noted and ADC updated 

to include use of reply code 

612.
Attachment, ADC 1236

Page 5

3. Air Force AF originally non-concurred, and has concerns with 

blocking the 504 forwarding reply code. However, after 

numerous meetings the AF concurs and access will be 

given to certain individuals to allow them to respond to 

SDRs for numerous AF RICs.

As noted.

4. US Army Concur without Comment. As noted.

5. USMC Concur without Comment As noted.

6. DAAS Concur without Comment As noted.

7. USTRANSCOM None noted. Noted.

8. AFSAC Concur without Comment. As noted.

9. DCMA Concur without Comment. As noted.
Enclosure 1, ADC 1236

Page 1

Enclosure 1, Defense Logistics Manual (DLM) 4000.25, Volume 2, Revisions

Revise Chapter 17 as shown. Changes are identified in red bold italics. 

(Preceding text not shown)

C17.2.4.4. Security Assistance customers submitters may use SDRs to contest the 

decision stated in a reconsideration response.

(Intervening text not shown)

C17.3.12.1.2.3. Replacement or corrected replies. The action activity may identify a 

replacement or corrected reply using Disposition Status Code 151 to indicate that the previous 

reply is superseded. This code may be used when a closed or completed SDR (meaning a 

response was already provided by the action activity) is reopened or reconsidered as a result of a 

formal customer submitter request for reconsideration; as a result of new findings during action 

activity review/investigation; or as a result of a mistake requiring a corrected reply.

(Intervening text not shown)

C17.3.12.1.4.1. Customer Returns. In many cases, logistics business rules require that 

the return shipment use the same document number as the related order/sale. While this reuse 

may be appropriate for some materiel held at the customer’s location, it is not feasible for all 

situations. When the materiel is already located in a DLA Distribution Center and no physical 

shipment is required to return the materiel to the original owner/manager, the current owner must 

not reuse (or suffix) the original document number for the Prepositioned Materiel Receipt (PMR) 

and Materiel Release Order (MRO) directing the return. The responsible action activity must 

assign an alternative document number when materiel is located in a DLA Distribution Center 

and the current owner must use a ship-in-place materiel release order to direct the return.

Additionally, customers submitters must use the reconsideration request to ask for an alternative 

document number due to system constraints prohibiting reuse of the original shipment document 

number. When using a new document number for the directed return of discrepant/deficient 

materiel, the owner/manager and the returning activity must retain an audit trail linking the old 

and new document number/suffix (both document numbers will be included in the PMR, 

Materiel Returns Shipment Status, and Receipt transactions).

(Intervening text not shown)

C17.3.17. Historical SDR Purpose and Procedures. During the design for WebSDR, 

Components using internal SDR systems identified a need for a business process that would 

allow SDRs to be worked internal to the Component or internal to the Component’s SDR 

application without providing standard transaction/e-mail outputs from WebSDR. Historical 

SDRs (identified by Transaction Set Purpose Code 49) were established for this purpose.

Historical SDRs are currently employed by two one systems: the Product Data Reporting and 

Evaluation Program (PDREP) and the Air Force Security Assistance Command (AFSAC) SDR 

Application (SDR-A).
Enclosure 1, ADC 1236

Page 2

(Intervening text not shown)

C17.3.17.2. For AFSAC SDR-A-generated SDRs, the use of historical SDRs allows 

WebSDR to support internal communication of SDRs prior to ILCO approval and transmission 

of the SDR to the applicable action activity. Note that the AFSAC SDR-A use of historical 

SDRs is planned to be phased out during future enhancement to that system, but is required to 

support current functionality. Without the historical SDR process there would be premature 

dissemination of SDRs. Because SDR-A has no reply capability, WebSDR acts as the 

centralized tool for inputting all replies to the customer. Prior to submitting an SDR to the 

responsible action activity, the ILCO analyst validates the SDR to ensure it meets regulatory and 

Letter of Offer and Acceptance (LOA) timelines for submission, as well as minimum dollar 

value requirements. The analyst also ensures it has supporting documents necessary for the 

action activity to effectively respond to the SDR. If any of these conditions are not met, SDR-A 

transmits the SDR to WebSDR as an historical transaction with an action activity RIC FNH 

(AFSAC). Then the ILCO goes into WebSDR and inputs a reply that WebSDR transmits back 

to SDR-A to either request additional information from the customer or close out the SDR. If the 

ILCO asked the FMS customer for additional information, and the customer submits a correction 

to SDR-A with that information, SDR-A transmits that SDR to WebSDR with the appropriate 

action activity RIC (e.g. the source of supply or shipping depot) as a new original (Transaction 

Set Purpose Code 00) (not a correction) and the SDR posts in WebSDR (using same WebSDR 

control number as the historical). WebSDR must suppress any outgoing information copies of 

the SDR until the new original SDR is established.

(Intervening text not shown)

C17.3.20.1.1.7. WebSDR will suppress transmission of outgoing source of supply 

information copies associated with Web-prepared replies to historical SDRs (Transaction Set 

Purpose Code 49 on the original submission). These replies serve a limited purpose for 

communication between Air Force Security Assistance Command (AFSAC) offices pending full 

implementation of the Security Assistance Enterprise System (SCES) or alternative processing 

method.

(Intervening text not shown)

C17.3.20.2.12. Reply with Discrepancy Status/Disposition Code 504 forwarding action 

may not be used to forward SDRs where incomplete information is available to construct the 

new forwarded SDR, or the SDR is otherwise not suitable for automated forwarding 

action. Reject with Discrepancy Disposition/Status (Reply) Code 935.

C17.3.20.2.13. WebSDR direct online application input and SDR transactions will be 

rejected for any SDR Document Type Code other than 7 or R, or any SDR using Reply Code 

504 with any other reply code. Reject with Discrepancy Disposition/Status (Reply) Code 946.

(Intervening text not shown)
Enclosure 1, ADC 1236

Page 3

C17.3.20.4.1. WebSDR will facilitate appropriate distribution when the action party

receiving the initial distribution employs the Distribution/Status (Reply) Code 504 indicating the

SDR must be forwarded to a new action activity. WebSDR direct online application and SDR

transactions will be edited to restrict the use of Reply Code 504 for use only for SDR 

Document Type Code 7 or R, and SDRs using another reply code in conjunction with Reply 

Code 504 will be rejected with Reply Code 949 - Transaction rejected. Reply Code 504 can 

only be used for SDR Document Type Code 7 or R, and cannot be used with any other reply 

code. Action Activities receiving SDRs (other than Type 7 or R) identified to the wrong action 

activity will use Reply Code 612 to reject the SDR back to the submitter ILO using Reply Code 

504 to redirect it to another action activity. WebSDR will prepare the forwarded SDR in an 

original SDR format (Transaction Set Purpose Code 00) retaining all the information provided in 

the initial transmission plus the unique data fields applicable to the forwarding action per the 

DLMS 842A/W. The submitter will receive the reply transaction as notification of interim 

status. If an information copy of the initial SDR was provided to the source of supply based 

upon Component rules, WebSDR will prepare an information copy of the forwarded transaction 

using the correction format (Transaction Set Purpose Code CO). When the source of supply 

identified in the SDR correction is the same activity identified to receive the source of supply 

copy of the SDR reply (Transaction Set Purpose Code 11), this reply transaction will be 

suppressed as redundant to the correction. WebSDR will update the SDR database to reflect the 

current action activity after this type of forwarding action and ensure that subsequent 

transactions are properly transmitted to the new action activity (rather than the original action 

activity).

(Intervening text not shown)

C17.5.9.1.1. The Security Assistance purchaser may ask the U.S. Government to 

reconsider the disposition for a reported supply discrepancy. Purchasers must send a Request for 

Reconsideration to the ILCO within 45 calendar days from the date of the ILCO final reply to the 

customer submitter concerning disposition, except when materiel/exhibit return to the customer 

is required subsequent to US Government-directed evaluation/testing/repair.

C17.5.9.1.2. The request for reconsideration will use the nonconformance number 

associated with the original report. When the customers submitter asks for reconsideration, the 

ILCO will add a Suffix Code R to the SDR number. The ILCO will convert the request for 

reconsideration to electronic transmission and forward to the appropriate DoD ICP/IMM or GSA 

action activity for reconsideration within 20 calendar days of receiving the request for 

reconsideration from the customer submitter.

C17.5.9.2. Second Request for Reconsideration (Contested Reconsideration Response). 

Security Assistance customers submitters may further contest the ICP/IMM or GSA decision 

given after the request for reconsideration. To do so, the customersubmitter must send a written 

request to the ILCO within 45 calendar days from the date of the ILCO reply to the request for 

reconsideration. The customersubmitter must indicate why the ICP/IMM or GSA decision is not 

satisfactory. Cite the nonconformance number on the original SDR. 
Enclosure 2, ADC 1236

Page 1

Enclosure 2, Revise the DLMS Implementation Convention (IC) 842A/W SDR 

transaction as shown below.

Item Location Revision to 4030 842A/W Standard Supply Discrepancy Report 

(SDR), Follow-up, Correction, Cancellation, & Reconsideration 

Request

Reason

1. DLMS 

Introductory 

Notes

Add ADC 1236 to DLMS introductory notes:

- ADC 1236, Miscellaneous SDR Enhancements Including 

Reconsideration Requests, Edit Use Of Reply Code 504, And Remove 

AFSAC Historical Procedures.

To identify DLMS 

changes included in 

IC. 

2. 2/BNR01/0200 Revise DLMS Notes for Qualifier 15:

Re-Submission 

DLMS Note:

1. Use to request reconsideration on a SDR resolution/disposition 

(SDR must contain additional information/justification). Can be

Uused only after having received a reply from the action activity. 

2. Use of request for reconsideration is valid for all SDR Document 

Type Codes. 

Revises note with 

referenced ADC for

reconsideration 

remarks to annotate 

they are valid for 

all SDR document 

Type Codes.

3. 2/DTM01/0600 Revise DLMS Notes for Qualifier 881:

Request

DLMS Note:

1. Use to identify the date of the customer’s submitter’s request for 

reconsideration.

Change customer to 

submitter.